Parliamentary Energy confirms not to require oil companies to extend their contracts for 50 years

At the time there were conflicting Commission on oil and energy parliamentary comments on the requirement of oil companies operating in Iraq to extend the duration of its contracts for fifty years, said a spokesman for the Oil Ministry, Asim Jihad said the talks with these companies are constantly calling some lawmakers "not to launch random statements".
The parliamentary energy committee, revealed the requirement for oil companies to extend their contracts for fifty years, in exchange for the consideration of the review and modify these contracts, warning that the review of these contracts will lead to a "loss of Iraq".
The Chairman of the Commission on oil and energy parliamentary Ibrahim Bahr al-Ulum, in an interview for the "long", that "no truth to the statements recently Ashiat regarding the requirement for companies operating in Iraq to extend the duration of its contracts for fifty years, but for short periods of up to five and possibly seven years."
He added by saying that "negotiations are still in their infancy, and I expect to be productive and satisfying and rewarding for all parties," noting that "There is no doubt that the contracts may change and changes are some of the items where but it will be in the interest of both parties and reinforce the partnership between them."
He noted the Chairman of the Commission on oil and energy parliamentary "The negotiations resolved Economic Director-Faisal, a knowledge of the benefits that come to the parties, and that any change in the terms of the contract must be subject, which in turn will resolve the benefit of the parties."
He continued by saying that "negotiations are still in their infancy and need to be for quite some time to make sure that would lead to him, explaining that he" stands with the review of licensing rounds contracts that put the parliamentary energy clause in the draft budget for 2016 called for the necessity of the government's commitment and ministry to re-negotiate with the companies in order to improve some terms of the contract in line with the economic situation of the country's requirements. "
In turn, the economic expert Bureihi Ahmed said in an interview for the "long" that "The oil ministry is able to negotiate with foreign companies to change some of the important items which can save a lot of money to the Iraqi government in light of the financial crisis in the country."
The flaw is located in the infrastructure associated with the development of the terms of the development of processes for the fields to increase production, which cost the government an additional amount calculated on the overall price of a barrel of oil extracted."
Bureihi said that "talking about the extension of the contract period to nearly 50 years of talk is not accurate on the part of investment companies as the period specified in the contracts ranging from 20-25 years which is sufficient for the advancement of the Iraqi oil sector." He said the "contracts concluded between the federal government and international oil companies to cancel permits and if so requested by the Oil Ministry, but must provide a cadre of Iraqi engineers and technicians are able to take the lead in the coming period without relying on those companies."
Bureihi He stressed that "The oil ministry was discussing for some time and not infrequently with foreign companies to reduce the cost of development of oil fields, if we know that the cost of production per barrel of oil less than a dollar."
For his part, spokesman for the Oil Ministry, Assem Jihad, said in an interview with the (long-Presse), "The Oil Ministry is in the process of consultation with international oil companies operating in Iraq to modify some of the items in the contracts concluded with them to serve the common good."
"As the ministry of those companies asked to reduce expenses related to the development of oil fields and this is what is happening now talking about it, saying," When we get to the stage of re-drafting of contracts, we will announce it in due course. "The Jihad that" dialogues with the oil companies take place in a calm dialogue to reach an agreement that serves the oil industry and the various threads both productivity and expenditure plans Uwe relationship with these companies, "but he also said" today in all countries of oil there review of all petroleum activities, and Iraq is one of those countries. "
"It's also in all oil countries in the world, the international oil companies announced cut costs because of economic conditions that occurred after the collapse of oil prices, therefore, it is not limited to Iraq, just as some people think."
Continued Jihad by saying that "our problem in Iraq, we are in a time where we're headed in the country to encourage investment in all sectors in the light of the economic crisis that beset it, and with that the Ministry of Oil has been a leader in attracting international companies reputed came Petknlogia and investments of large contributed to the development of the oil industry, which gave impression on the stability of the investment environment, but we see random statements issued from here and there. "
He went on saying that "these statements do not serve the country in anything, the contrary is give the wrong messages to invest time Iraq is heading toward him in light of the economic crisis."
The Commission on oil and energy in the House of Representatives attacked, in the (13 / December / 2015), the Ministry of Oil because of licensing rounds which it signed with foreign companies contracts, and confirmed that the contract was extended from 20 to 25 years and reduced the government partner's share, while the ministry blamed the rise Oil production costs because of those contracts.
The international oil company BP, working in the Rumaila revealed, in (November 10, 2015), to provide international oil companies operating in Iraq proposals to the Iraqi side, to make adjustments to their contracts productivity, indicating that the Iraqi Oil Ministry, demanded to reduce development projects expenses as a result of the deterioration of oil prices.